Are you considering renting your car on Turo, or are you thinking of renting a car from someone on Turo?
If so, it’s important to understand how insurance works with Turo. Turo is a peer-to-peer car-sharing platform that allows private car owners to rent out their vehicles to other people.
It’s an excellent way to make some extra money, but it’s important to know how the insurance works to protect yourself and your car.
What is Turo?
Turo is a car-sharing platform that connects car owners with people who need to rent a car.
Unlike traditional car rental companies, Turo allows private car owners to rent out their vehicles to other people.
It’s an excellent way to make some extra money, and it provides people with a wider range of rental options.
How Does Turo Work?
Turo is a simple platform that allows car owners to list their vehicles for rent. Renters can browse the listings and choose a car that suits their needs.
The owner and renter then agree on a rental price, and the renter pays for the rental through the Turo platform.
What Insurance Options are Available on Turo?
Turo offers three levels of insurance coverage for its renters:
- Basic Insurance: This is the minimum level of coverage required by Turo. It provides liability coverage up to the minimum limits required by the state where the car is rented. It also provides physical damage coverage up to the actual cash value of the car, with a $3,000 deductible.
- Standard Insurance: This provides liability coverage up to $1 million and physical damage coverage up to the actual cash value of the car, with a $500 deductible.
- Premium Insurance: This provides liability coverage up to $1 million and physical damage coverage up to the full value of the car, with no deductible.
What Does Turo’s Insurance Cover?
Turo’s insurance covers the following:
- Liability: If you are in an accident and are found to be at fault, Turo’s insurance will cover the cost of any damage you caused to other people or property.
- Physical Damage: Turo’s insurance will cover the cost of any damage to the rental car, up to the coverage limits.
- Theft: If the rental car is stolen while in your possession, Turo’s insurance will cover the cost of the car up to its actual cash value, minus any deductible.
- Loss of Use: If the rental car is damaged and cannot be rented out, Turo will reimburse the owner for the lost rental income.
What’s Not Covered by Turo’s Insurance?
There are some things that are not covered by Turo’s insurance, including:
- Intentional damage to the car
- Damage caused by racing or other prohibited uses of the car
- Personal belongings stolen from the car
- Mechanical issues not caused by an accident
How Does Turo’s Insurance Work with Your Personal Auto Insurance?
If you rent out your car on Turo, your personal auto insurance may not cover you while the car is being rented.
Turo’s insurance is primary, which means it will be the first insurance policy to cover any damages.
However, if Turo’s insurance limits are reached, your personal auto insurance may be secondary and may provide additional coverage.
How Much Does Turo’s Insurance Cost?
The cost of Turo’s insurance varies depending on the level of coverage selected and the value of the car being rented.
The cost is usually between 10% and 15% of the rental price.